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The amounts of civil penalties that can be assessed for regulatory violations are established in the federal statutes that grant enforcement powers. These penalties are assessed based on specific criteria as outlined in the regulations.
Scope
This regulation applies to motor carriers, intermodal equipment providers, property brokers, freight forwarders, and their agents and employees.
Regulatory citations
- 49 CFR 386, Subpart G — Penalties
Key definitions
- Broker: A person, other than a motor carrier or an employee agent of a motor carrier, who arranges, for compensation, the truck transportation of cargo belonging to others, utilizing authorized for-hire carriers to provide the actual truck transportation. A broker does not assume responsibility for the cargo and usually does not take possession of the cargo.
- Commercial motor vehicle (CMV): A self-propelled or towed motor vehicle used on a highway, in interstate commerce, that meets any one of the following criteria:
- Has a gross vehicle weight rating (GVWR) or gross combination weight rating (GCWR), or gross vehicle weight (GVW) or gross combination weight (GCW), of 10,001 pounds or more, whichever is greater; or
- Is designed or used to transport more than 8 passengers (including the driver) for compensation; or
- Is designed or used to transport more than 15 passengers (including the driver), and not used to transport passengers for compensation; or
- Is transporting hazardous materials of a type or quantity which requires placarding.
- Freight forwarder: A person offering the general public (other than as a pipeline, rail, motor or water carrier) transportation of property for compensation and in the ordinary course of business.
- Intermodal equipment provider (IEP): Any person who interchanges intermodal equipment with a motor carrier according to a written agreement or has contractual responsibility for the maintenance of the intermodal equipment.
- Motor carrier: A for-hire motor carrier or a private motor carrier. The term includes a motor carrier’s agents, officers, and representatives as well as employees responsible for hiring, supervising, training, assigning, or dispatching of drivers and employees concerned with the installation, inspection, and maintenance of motor vehicle equipment and/or accessories.
Summary of requirements
The determination of the actual civil penalties assessed in each proceeding is based on defined limits or minimums and consideration of information available at the time the claim is made concerning the nature and gravity of the violation.
In regards to the violator, the information includes:
- The degree of culpability,
- History of prior offenses,
- Effect on ability to continue to do business, and
- Other matters as justice and public safety may require.
In addition to the factors listed above, a civil penalty assessed under 49 U.S.C. 14901(a) and (d) concerning household goods, is also based on the degree of harm caused to a shipper and whether the shipper has been adequately compensated before institution of the civil penalty proceeding.
In adjudicating the claims and orders under the administrative procedures, additional information may be developed regarding those factors that may affect the final amount of the claim.
When assessing penalties for violations of notices and orders or settling claims based on these assessments, consideration will be given to good faith efforts to achieve compliance with the terms of the notices and orders.